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JULIE O. BRU *� * Telephone: (305) 416-1800
CityAnomey ���;, ;;� y Telecopier. (305) 416-1801
i �E-MAIL: Law@ci.rniami.fl.us
August 11, 2009 bww
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Maria R. Ortiz, Director
AUG 17 4`064.
Community Planning and Development DIRECTO
U.S. Department of Housing and Urban Development DIRECTORS OFFICE
Miami Field Office
909 SE First Avenue, Room 4500
Miami, FL 33 H 1-3028
RE: The Leaf - Conflict of Interest - CDBG Funding Regulation 24 CFR Part 570,
Section 611
Our file No.: 09-2487
Dear Ms. Ortiz:
The purpose of this correspondence is to support the City of Miami's request for an
exception to the provisions of 24 C.F.R. § 570.611(b), for the proposed transaction involving a
City of Miami ("City") employee, as the owner of a rental project known as The Leaf, in
receiving funding from the CDBG Disaster Relief Program for rehabilitation of The Leaf.
BACKGROUND
The City received CDBG funding for the purpose of rehabilitation of multifamily
properties pursuant to a contract with Miami -Dade County. A City employee, police officer,
Stephon McGill owns a multifamily property known as The Leaf. Officer McGill submitted a
proposal for Disaster Relief Program funding for the rehabilitation of his property, The Leaf.
THE PROPOSED TRANSACTION WOULD NOT VIOLATE STATE OR LOCAL LAW
Local Law: While City Code Section. 2-612 prohibits City employees from entering into
any contract or transacting any business with the City, that section contains an explicit exception
for participation in federal economic development programs administered by the City; provided
that the employee meets all criteria of the program, the City Manager approves the participation
of the employee and the employee is identified as being an employee of the City in applicable
documents. Miami Code Section 2-6 12 provides in pertinent part:
186550.doc
OFFICE OFTHE CITY ATTORNEY/444 S.W. 2nd Avenue, Suite 945/Miami, Florida 33130-1910
Maria R. Ortiz, Director
Community Planning and Development
August 12, 2009
Page 2 of 3
Sec. 2-612. Transacting business with city; appearances before city
boards; post -employment restrictions; participation in the award of
certain contracts under the procurement ordinance; penalties, etc.
(a) No person included in section 2-611 shall enter into any contract or transact any
business with the city or any person or agency acting for the city, or shall appear in
representation of any third party before any board, commission or agency of which such
person is a member. No employee shall appear in any capacity on behalf of any third
party before any board, commission or agency of the city. Any such contract or
agreement entered into or appearance made in violation of this section shall render the
transaction voidable. However, this section shall not apply to an employee participating
in federal economic development programs, the community development block grant
assisted single family rehabilitation loan program, or the various affordable housing
programs assisted through the home investment partnership program and state housing
initiatives partnership program administered by the department of community
development provided that the employee meets all criteria of the program and provided
that the city manager approves the participation of the employee and that the employee is
identified as being an employee of the city in applicable documents. (Emphasis supplied)
County Ordinance: The Miami -Dade Ethics Commission has issued a written
opinion, dated July 23; 2009, that no conflict exists under the Miami -Dade County Conflict of
Interest & Code of Ethics Ordinance at Section 2- 1 1.1 to prevent Officer McGill from
participating in the Disaster Relief Program. A copy is attached for your reference.
State Law: Additionally, the proposed transaction would not violate any State conflict of
interest provisions. In fact; State law expressly exempts such a transaction from its conflict of
interest prohibitions. See, § 112.313, F. S. "Standards for conduct for public officers, employees
of agencies, and local government attorneys." Specifically, § 112.313 (12), provides in pertinent
part: No person shall be held in violation of subsection (3) [Doing business with one's agency or
subsection (7) [Conflicting employment or contractual relationship] if
(i) The public officer or employee purchases in a private capacity goods or services, at a
price and upon terms available to similarly situated members of the general public, from
a business entity which is doing business with his or her agency.
0) The public officer or employee in a private capacity purchases goods or services from
a business entity which is subject to the regulation of his or her agency and:
1. The price and terms of the transaction are available to similarly situated members of
the general public; and
2. The officer or employee makes full disclosure of the relationship to the agency head or
governing body prior to the transaction.
186550.doc
Maria R. Ortiz, Director
Community Planning and Development
August 12, 2009
Page 3 of 3
Therefore, based on the foregoing, I, Julie 0. Bru, City Attorney of the City of Miami,
Florida, hereby opine that the proposed transaction would not violate State or local law.
Sincerely,
Julie 0. Bru
City Attorney
JOB1scs
Enclosures
cc: George Mensah, Director
Community Development
Denise Wallace
Assistant City Attorney
186550.doc